Practice case 2

Q3
In my opinion, WW had a very good strategy. We can consider that company have
three different but very used categories: apps; meeting and coaching services; consumable
products. Apps have a SmartPoints and FitPoints. It is very attractive and interesting for
people, it is like a game for everybody. There is a minimum daily points allowance of 23
points, which will adjust up based on age, gender, height and weight. There is also be a
weekly SmartPoints allowance and FitPoints. From people psychology, they like be the first.
Also, there were rewards points to members for tracking their food. That is why people are
very stimulating to do it. Consumer behavior caught competitive trand. Another category is
meeting and coaching services. This is a good innovation too, people meet every week and
discuss diet topics. Attenders start meeting with documenting their weight. It is quite good,
because people can share their experience, knowledge and give pieces of advice to each
other. Also, of course there are some people who hesitate to share their obesity results or
documentation to everybody. In this way, company decided to make personal coaching
session. Coaches are only professionals, it creates additional confidence in costumers
segment. From financial side such category was very profitable in 2018, company generated
around 84% of the company’s total revenue. This is bigger than Pareto principle. The last
category is “consumable products”. There were specific bakery products, cookbooks, bars
and snacks. 12,6% of total revenue was this category. Also, another good stimulation were
famous faces in this company. For example, Oprah Winfrey was one of the companies face
and her announcements increased stock price as we can see in Exhibit 2.
Q4.
In last years carbohydrate-free diet became very popular and many people try to follow such
diet. If I were a CEO, I would increase carbohydrate-free consumable products. In fact, price
on this food quite high (premium price), proceeding this way, company will be able to
generate more revenue. Secondly, Grossman noticed very well, that it is good idea to
implement short diets. For example, after New Year, Christmas, Independence Day, when
people gain some weight, and they want to lose them in a short period. Also, we can add to
this segment “Diet after vocation” and make a high price, because if people can afford
relaxing in all inclusive hotels, they are with good income and they can afford to pay for such
diet plan. What concerns Kurbo project, in my opinion for children company has to make app
more attractive. Children will be happy if they could find new friends in app and share their
results.